Texas famously has no statewide general contractor license — but that doesn’t mean Texas contractors can skip insurance. In practice, GCs, project owners, municipalities, and lenders set the requirements here, and they set them high.

How Texas is different

Trade contractors (electrical, plumbing, HVAC) are licensed at the state level with their own insurance conditions, while general contractors face city-by-city registration rules. Texas is also the only state where workers’ compensation is optional for most private employers — but “optional” is misleading: most commercial contracts and GCs require subs to carry it anyway, and non-subscribers give up powerful legal defenses if an employee is injured. For most contracting businesses, carrying comp is the smart call even where it isn’t the required one.

What Texas contractors typically carry

• A core program of general liability, workers’ compensation, commercial auto, and tools & equipment coverage
• $1M/$2M general liability — the de facto standard on Texas commercial contracts
• Commercial auto with real limits — Texas roads and work trucks generate serious claims

Trades we insure across Texas

We build Texas-specific programs for every trade we serve — see our Texas pages for plumbers, electricians, HVAC contractors, general contractors, carpenters, masons, painters, flooring contractors, excavation contractors, landscapers, handymen, and janitorial businesses.

Why compare carriers in TX

With requirements set by contracts rather than one state rulebook, Texas programs benefit from being built around your actual work. We compare multiple A-rated carriers on every quote. Also serving contractors in New Jersey, Pennsylvania, and Florida.

Get your Texas contractor insurance quotes here.

How much does contractor insurance cost in Texas?

Most small contracting businesses see general liability in the range of roughly $70–$250 per month depending on trade — a handyman prices very differently from an excavation contractor. Workers’ compensation runs per $100 of payroll by class code, and commercial auto depends on your fleet. The biggest Texas pricing variable isn’t any of those — it’s which carriers are competing for your account, which is why we quote multiple A-rated markets on every Texas risk instead of one company’s rate.

Certificates of insurance, without the wait

Nothing stalls a Texas contract faster than a missing COI. We issue certificates same-day, handle additional insured endorsements and waivers of subrogation, and keep renewal certificates flowing to your GCs and property managers automatically. Request a certificate here.

Why Texas contractors choose Provident Financial Group

We’re an independent commercial insurance agency specializing in contractors. That means a real market comparison across multiple A-rated carriers, pay-as-you-go workers’ comp options that follow seasonal payroll, audit support, and someone who reads the insurance requirements in your Texas contracts before they become your problem.

Texas contractor insurance FAQs

Is contractor insurance required in Texas?

It depends on your trade and where the requirement comes from — licensing and registration rules, workers’ comp law once you have employees, and the contracts you sign. In practice, most working Texas contractors need general liability and workers’ comp to operate, because GCs and commercial clients demand both regardless of what the state minimum says. We confirm the current rules for your trade when we quote.

I only use 1099 subs — do I still need workers’ comp?

Often yes. Regulators look at the actual working relationship, not the label, and uninsured subs’ payroll typically gets charged back to your policy at audit. Collecting certificates of insurance from every sub is the habit that saves Texas contractors real money.

What limits do Texas GCs and project owners expect?

$1M per occurrence / $2M aggregate general liability is the standard ask on commercial work, with additional insured endorsements as a matter of course. Larger commercial and municipal contracts push into umbrella territory — $2M to $5M+ — which is usually cheaper to add than contractors expect.

How fast can I get covered and get a certificate?

Same-day quotes are normal, binding typically takes 24–48 hours, and certificates issue immediately after binding. Start your Texas quote here.